2020 Referendum Climate: Madison Tax Base Edition

More than 70% of the city’s General Fund revenues come from the property tax, and nearly two-third of property taxes have already been paid for 2020, which brings some stability, Schmiedicke said. The city already imposed a $40 wheel tax for the current budget. But preliminary projections show an overall drop of 4%, or about $13 million, in general fund revenues that wipes out forecast growth from 2019 to 2020, he said.

The city expects hotel room taxes to fall 30%, or about, $6 million, and anticipates general state aid cuts of 5%, or $1.6 million, due to state revenue shortfalls, Schmiedicke said. City investment earnings could fall 40%, or $1.5 million, he said.

Meanwhile, fines and forfeitures from moving and parking violations are expected to fall 25%, or 1.6 million, and licenses and permits may be down 15%, or 1.5 million, this year, Schmiedicke said. Many other revenues are expected to fall, including Metro Transit fares, street use vending; and Monona Terrace events.

Other impacts include rising pension costs due to reduced earnings in the Wisconsin Retirement System portfolio, and reduced liability insurance dividends, he said.